Ruminating on mistakes made is not always the best use of time, but we think it’s important for San Francisco rental property owners not to make the mistakes that we see other landlords and investors make time and time again.
There are dozens of easy errors that can easily lead to unpleasant expenses, penalties, and frustrations. Let’s take a look at the top 3 mistakes we see owners make. We’ll also provide a few tips on how to avoid them.
1. Laziness Around Laws
San Francisco is a unique rental market with its own strict set of regulations and laws. Not understanding those laws is a key mistake. Many rental property owners feel like they know everything they need to know as long as they have a basic understanding of fair housing laws and rent stabilization requirements. However, there’s a lot more nuance to it. San Francisco owners now have to understand:
- Interest paid on security deposits
- Organic waste recycling requirements
- Fire alarm upgrades are required
- The Rent Board requires registration and reporting
- You’ll have to report on-time tenant payments to credit bureaus, if they ask you to
Security deposit limits have recently changed, and laws around EV charging stations, e-Bike storage, and service and companion animals are always being modified or newly interpreted.
Knowing the fair housing laws and the just cause eviction requirements isn’t enough. There’s a lot of liability around legal requirements, and little room for error.
2. Avoiding Improvements to Units and Buildings
Improvements, upgrades, and renovations are not only necessary but beneficial. They affect your property’s habitability and safety as well as property values and appeal. Tenants are looking for modern and attractive places to live. When you have deteriorating appliances, chipping paint, and scratched flooring, it’s going to be difficult to attract high quality residents to your rental.
Make improvements during every turnover. It’s a good opportunity to impact marketing, and a recently updated property will attract higher rental values and better tenants. These do not have to be pricey renovations. Simply installing new lights, better fixtures in the kitchen, and a little bit of technology will make a difference. Residents today are looking for smart home features and energy-efficiency.
3. Sidestepping Professional Property Management
Not working with a property manager in San Francisco is basically the same as inviting mistakes.
Self-management may work elsewhere, but in the San Francisco rental market, it’s nearly impossible. There is a lot of competition, there are a lot of well-informed residents with a list of demands, and there are higher expenses for everything from basic maintenance work to insurance premiums. It’s competitive and always changing.
Managing on your own is a mistake. It means higher expenses, more risk, and some lost opportunities. With the right management partner, you position yourself for higher earnings, less stress, and fewer missteps.
We’re that management partner. We’ve been effectively leasing, managing, and maintaining investment properties for San Francisco rental owners for more than three decades. We’ve watched the market evolve, and we’re able to protect your investment and ensure it’s profitable.
Contact us at Gordon Property Management.
